LAHORE - The Pakistan Industrial and Traders Associations Front (PIAF) has opposed certain taxation measures announced in the federal budget 2010-11 and demanded their withdrawal. In a statement issued on Tuesday, Chairman PIAF Irfan Qaiser Sheikh said that one per cent increase in the rate of Sales Tax was bound to complicate the economic scenario. He said that it would have been better if the long-standing demand of the business community was accepted and the rate of GST was curtailed by one per cent. The PIAF chairman said that increase in rate of income tax and withholding tax for commercial importers was also a discouraging step for the importers. He said that 0.5 per cent increase in Turnover Tax for loss making units was also a disservice to the industry, which was expecting some relief package. The Chairman PIAF said that no measures were taken to create new jobs when the rate of unemployment was already touching the alarming levels. He urged the government to review the recently announced taxation measures in the larger interests of the economy. He also said that the issue of circular debt remained unresolved as no major measures were announced to eliminate it in the 2010-11 budget. He said that no step has been announced in the budget to eliminate circular debt affecting the performance of energy sector companies. He said hat the circular debt issue remained a major issue for the oil marketing companies, refineries, independent power plans and exploration and production sector companies. He said that the circular debt is said to be the main reason behind the power crisis in he country. He regretted that the internal investment has nose-dived from 15 percent to 10 percent of the GDP due to law and order situation, war against terror and the investor mistrust due to volatile political situation of the country. APP: President RCCI criticized the levy of 0.3 per cent as tax on banking transactions - saying the levy would greatly perturb the business community as they make such transactions on daily basis. Addressing Journalists, he said the government has exterminated Rs 100 billion subsidy which will definitely trigger the price hike specially the electricity charges. Talking about 10 percent cut in education and allocation of only Rs 17 billion for health budget, he said people would suffer with this decrease in health and education spending. Criticising various govt corporations like PEPCO, PIA, Railways, etc, who are running in losses to the tune of billions he added that loss earning corporations must be privatized. Emphasizing enhancement in power production he said maximum hydal and coal projects should be set up for producing cheap electricity. Chairman Jewelers Association Shaheen Atif also addressed and demanded that the threshold for imposing GST should be enhanced from Rs 7.5 million per annum turn over to a rational level as ever increasing gold prices are causing losses to the jewelers.